Slide 1: First Quarter FY 2023 Earnings Call Presentation
ADD COVER IMAGE HERE First Quarter FY 2023 Earnings Call Presentation Thursday, September 22, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain statements made today which will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties, and actual results may differ materially from those currently anticipated. 2
Slide 3: Regulation G
Regulation G Today’s comments include references to certain non-GAAP financial measures as defined in Regulation G. The reconciliation of these non-GAAP financial measures with the relevant GAAP financial information and other information required by Regulation G is provided in the Company’s earning
Slide 4: Peter Warwick
Peter Warwick President and Chief Executive Officer 4
Slide 5: First Quarter FY 2023
First Quarter FY 2023 • Results are in line with our plan for top- and bottom-line growth in fiscal 2023. • Lower year-over-year operating income and earnings reflecting increased investment in growth initiatives in our education business and a return to more typical seasonal revenue patterns post-p
Slide 6: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Back-to-school is significant to both our first and second fiscal quarters. • Purchasing has reverted to a more normal pattern in contrast to a year ago, and we anticipate ADD IMAGE HERE; proportionately higher revenues from back-to-school FULL WIDTH AND i
Slide 7: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • To date in calendar year 2022, Scholastic titles earned nearly 100 starred reviews. • Strong presence on The New York Times Bestseller lists: Titles captured a record 11 out of 15 spots on the Graphic Novels list. • Fall releases include a picture book fro
Slide 8: Children's Book Publishing & Distribution
Children’s Book Publishing & Distribution • Fall book fairs and the first monthly club order form once again capture and amplify back-to-school energy. • In-person book fair confirmation rates are strong, putting us on our projected target of 85% of pre-pandemic bookings in fiscal 2022, an increase
Slide 9: Education Solutions
Education Solutions • Education Solutions continues to make great progress addressing classroom and school districts’ most pressing needs, while strategically increasing investments to scale go-to-market capabilities and expand our differentiated offering of digital solutions. ADD IMAGE HERE; • The
Slide 10: International
International • Continued focus on growth areas, rationalizing our lines of business that no longer align with our strategy, such as in Asia, where we completed the disposition of the direct sales business. ADD IMAGE HERE; FULL WIDTH AND • Despite the lingering impact of COVID, we see HEIGHT OF GREY
Slide 11: Kenneth Cleary
Kenneth Cleary Chief Financial Officer 11
Slide 12: Q1 FY23 Earnings (before and after one-time items)
Q1 FY23 Earnings (before and after one-time items) In $ Millions (except per share) First Quarter 2023 First Quarter 2022 One- Excluding One- Excluding As Time One-Time As Time One-Time Reported Items Items Reported Items Items Diluted earnings (loss) per share (1) $ (1.33) $ — $ (1.33) $ (0.70) $ (
Slide 13: Q1 FY23 Adjusted EBITDA
Q1 FY23 Adjusted EBITDA Three Months Ended In $ Millions 08/31/2022 08/31/2021 Earnings (loss) before income taxes as reported $ (57.9) $ (33.3) One-time items before income taxes — (4.2) Earnings (loss) before income taxes excluding one-time items (57.9) (37.5) Interest (income) expense (0.2) 1.3 D
Slide 14: Q1 FY23 Balance Sheet Items and Cash Flow
Q1 FY23 Balance Sheet Items and Cash Flow In $ Millions Aug 31, 2022 Aug 31, 2021 Free cash flow (use) (3 month period ending) (1) $ (76.5) $ 49.1 Accounts receivable, net $ 242.9 $ 244.3 Inventories, net $ 379.1 $ 298.1 Accounts payable $ 208.9 $ 185.6 Deferred revenue $ 182.6 $ 125.5 Accrued royal
Slide 15: Q1 FY23 Revenues
Q1 FY23 Revenues Three months ended In $ Millions 08/31/2022 08/31/2021 Change Book Clubs $ 6.3 $ 6.8 $ (0.5) (7)% Book Fairs 28.3 16.0 12.3 77 % Consolidated Trade 90.1 93.0 (2.9) (3)% Total Children's Book Publishing and Distribution 124.7 115.8 8.9 8% Education Solutions 73.2 80.1 (6.9) (9)% Inte
Slide 16: Peter Warwick
Peter Warwick President and Chief Executive Officer 16
Slide 17: In Closing
In Closing • This past quarter has built a solid foundation and the positive trends we saw in the previous fiscal year have continued to benefit our performance. • Four critical factors: • Funding to close the reading achievement gap should continue, and we are uniquely positioned to help because of
Slide 18: Questions
Questions For any questions, please contact Scholastic Investor Relations: Investor_Relations@Scholastic.com 18
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